M/s NORTHERN HOSIERY FACTORY THROUGH ITS PROPRIETOR MR. SUNIL KUMAR BANSAL v. COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX & ANR

📅 June 8, 2026 👤 Team Batuk Consultancy 📂 GST, GST Case Laws

High Court, Delhi

Sanjeev Sachdeva, Justice & Ravinder Dudeja, Justice

M/s NORTHERN HOSIERY FACTORY THROUGH ITS PROPRIETOR MR. SUNIL KUMAR BANSAL

COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX & ANR

W.P.(C) 2464/2024 & CM APPL. 10133/2024 dated 27.02.2024

Law : GST

Act Name : Central Goods & Services Tax Act, 2017

Relevant Section : Section 29

Decision : In favour of assessee

Cancellation of GST registration with retrospective effect – No opportunity to object to the retrospective cancellation of the registration – Violation of principles of natural justice – Petitioner had submitted various applications seeking cancellation of registration certificate. Pursuant to the said applications, notices were issued by the respondent seeking additional information and documents relating to application for cancellation of registration. the applications were rejected and and a SCN was issued . The impugn SCN does not put the petitioner to notice that the registration is liable to be cancelled retrospectively – Held That – In terms of Section 29(2) of the Act, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. Registration cannot be cancelled with retrospective effect mechanically. It can be cancelled only if the proper officer deems it fit to do so. Such satisfaction cannot be subjective but must be based on some objective criteria. It is important to note that, according to the respondent, one of the consequences for cancelling a taxpayer’s registration with retrospective effect is that the taxpayer’s customers are denied the input tax credit availed in respect of the supplies made by the tax payer during such period – it is not considered apposite to examine this aspect but assuming that the respondent’s contention in required to consider this aspect while passing any order for cancellation of GST registration with retrospective effect. Thus, a taxpayer’s registration can be cancelled with retrospective effect only where such consequences are intended and are warranted. It may be further noted that both the Petitioners and the department want cancellation of the GST registration of the Petitioner, though for a different reason.

Represented By:

Counsel for the Petitioner: Rakesh Kumar & P.K. Gambhir, Advocates.

M/s NORTHERN HOSIERY FACTORY THROUGH ITS PROPRIETOR MR. SUNIL KUMAR BANSAL v. COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX & ANR

M/s NORTHERN HOSIERY FACTORY THROUGH ITS PROPRIETOR MR. SUNIL KUMAR BANSAL v. COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX & ANR

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